Whether your current vehicle is on the way out or you’re looking to purchase your very first car, one of the primary questions that will arise on your quest for a new set of wheels will be - new or used?
Of course, a brand new car kitted out with the latest technology and unsullied by previous ownership is an appealing concept. But the stereotype of used vehicles being second-rate, unreliable money pits is far from accurate. Forgoing the factory-fresh model in favour of a preloved car can be beneficial in numerous ways.
Cost
The significantly reduced price tag is the main benefit of opting for a used car. For the road user keen on the latest factory offerings, a used car may not spark your interest; however, it is entirely possible to purchase a comparable used model for a fraction of the cost.
Depreciation - the difference in value between a new and used car - drops between 15% and 35% within the first year of ownership, amounting to around 60% by year three. This rapid depreciation rate in new cars is due to several factors, including VAT and dealership commission. Keep in mind that new cars don’t stay new for long. The decline in value averages out over time, at a slower rate, through general wear and tear.
Due to the decrease in value, used cars are usually cheaper to insure than new cars, although this is not always the case - newer cars often come equipped with state-of-the-art safety and anti-theft features that may lower your premium. It is always wise to shop around for the best insurance deal, no matter the age of your car.
Buying a used model bypasses the risk of hidden fees such as shipping costs, which can add several hundred onto the overall price of your new car.
Warranties
Used car warranties typically last anywhere between three months and three years, depending on the seller. You are unlikely to get a warranty equivalent to the manufacturer’s offer; however, you won’t be hard pressed to find a close match.
Checking Your Used Car
When buying a used car, it is advisable to run your own checks to ensure reliability and value. This is particularly applicable when purchasing from a private seller. Always request the relevant paperwork, V5 logbook, MOT and service history. Information regarding a car’s history will confirm mileage and clarify its previous treatment.
Check for superficial signs of accident damage, and don’t hesitate to ask the seller to explain any rust, leakage or unusual welding you may find. Once you’ve inspected the bodywork, interior and under the bonnet and you’re confident everything is in safe, working order, you can drive away with peace of mind. You can find comprehensive used car checklists on most car insurance websites.
Where To Buy From
There are numerous ways to source a used car, arguably, the most secure of which is from a franchised dealer. Approved used schemes ensure cars are put through rigorous checks before being sold.
Reputable used car programmes are also available online. Akin to a regular dealership, these online services typically offer payment plans for financing and part-exchange schemes whilst allowing you to tailor your search to find the perfect model. For example, if you have a family and require a large vehicle, you can alter your search options to find the best used SUVs.
The lowest price is typically associated with private sellers; however, this does come with an increased risk. These “sold as seen” transactions are often not legally binding if something should go wrong post-purchase.
Disadvantages
As with every secondhand purchase, sometimes it is impossible to know the ins and outs of a car’s history. Buying from a reputable dealership significantly reduces this risk, but be aware when buying from an individual seller.
There is no “made to order” option with a used car - buying new gives you absolute control over specifications in terms of colour, features and accessories. You may also have to settle for slightly outdated technology. That said, the amount of choice on the used car market is extensive, so you can still afford to be selective.
